. /.   WORLD TRADE  
ORGANIZATION  G/C/W/550 
1 May 2006 
 
 (06-2071) 
Council for Trade in Goods Original:   English 
  
 
CARIBBEAN BASIN ECONOMIC RECOVERY ACT 
 
Communication from the following CBERA beneficiaries:
 
Antigua and Barbuda, Barba dos, Belize, Dominica, Grenada, Guyana, Jamaica,  
Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Suriname, Trinidad and Tobago  
 
  The following communication, dated 28 April 2006,  is being circulated at the request of the 
above-mentioned delegations.  
_______________ 
  
 The Caribbean Basin Economic Recovery Act (CBERA
1) of 1983 and the Caribbean Basin 
Trade Promotion Act (CBTPA2) of 2000, together referred to as  Caribbean Basin Initiative (CBI), 
provide unilateral quota-free and duty-free market access for goods from the twenty-four (24) 
beneficiaries of Central America and the Caribb ean.  Essentially, the Initiative is intended “….to 
assist in the achievement of a stable political and economic climate by stimulating the development of the export potential of region”
3. 
  The CBERA and subsequently expanded CBTPA  provide insurmountable benefits to CBI 
recipients.  This non-reciprocal arrangement pr ovides much needed market access opportunities for 
both traditional and non-traditional products
4 to the US market, particular ly when characteristics such 
as the small domestic market, low competitiveness a nd lack of adequate market access opportunities 
of the beneficiary countries are taken into accoun t.  Moreover, due to the dependence of the 
beneficiary countries on the export of a narrow range  of commodities, the products exported under the 
CBERA and CBTPA, as well as under other sim ilar non-reciprocal trading arrangements are 
important sources of foreign exchange thereby pr oviding employment for a large percentage of the 
population.  In short, the CBERA has proven very u seful in supporting the developmental aspirations 
of beneficiary countries, contributing to poverty erad ication and facilitating their integration into the 
multilateral trading system.  
                                                     
 
1 CBERA beneficiaries: Antigua and Barbuda; The Bahamas; Barbados; Belize; Costa Rica; Dominica; 
Dominican Republic; El Salvador; Grenada; Guyana ; Guatemala; Haiti; Honduras; Jamaica; Montserrat; 
Netherlands Antilles; Nicaragua; Panama; St. Kitts and Ne vis; Saint Lucia; Saint Vincent and the Grenadines; 
Trinidad and Tobago; Virgin Islands, British. 
2 The CBTPA enacted in May 2000 amends CBERA by  providing for preferential tariff treatment for 
additional products that originate in a country, which the US President ha s designated as eligible to receive 
CBTPA benefits (NAFTA parity).  
3 The U.S.-Caribbean Trade Partnership Act of 2000 , Title II – Trade Benefits for Caribbean Basin, 
Subtitle A, Sec. 202. 
4 The top export categories by CBERA beneficiary countries are: apparel, agricultural products, refined 
petroleum products, electrical machiner y, food products, chemicals, fish ery products, instruments, leather 
goods, and non-elect rical machinery. G/C/W/550 
Page 2  
 
   At a meeting of the Council for Trade in Goods  on Friday, 10 March on the initiative of the 
Chair, a draft decision (G/C/W/541) for the US-C aribbean Basin Economic Recovery Act (CBERA) 
was presented for the adoption of the Council. Although the Chair had allowed sufficient time for 
information gathering and consultations and came to the conclusion that this procedure had now 
exhausted itself, consensus was not attainable si nce a few WTO Members were unable to join the 
consensus.  One WTO Member object ed to the adoption of the waiver request, and another proposed 
an amendment which addresses rules of origin.   This delay in taking action on the waiv er request has serious consequences for the 
beneficiaries.  The implications for trade and investment are enormous as business decisions cannot 
be made in this climate.  
  The proposed modification to the effect that th e United States institute ch anges in the rules or 
origin of preferential schemes is not a matter that should be allowed to delay immediate action by the 
WTO membership on the draft decision on the waiver.  
 
 The beneficiaries of the CBERA and CBTPA wish to express appreciation to those WTO Members that have shown support for the draft decisi on.  The beneficiaries are also mindful of the 
concerns expressed regarding the renewal of the waiv er but would like to urge members concerned to 
support the Draft Decision by reserving their right to  paragraph 4 consultatio ns with the US should 
their rights be affected.  
 
 The beneficiaries cannot overemphasize the urge ncy of a solution of this outstanding matter 
since it threatens the economic survival of ma ny small, vulnerable economies that are heavily 
dependent on these preferences.  
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